What is the duration of the trademark license agreement between Angry Chickz Franchising, LLC and its Member?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Angry Chickz Franchising, LLC (the Company), a California limited liability company (LLC), was formed on June 9, 2023, and is the franchisor of a quick service, fast-casual restaurant concept "Angry Chickz". The Company is a wholly owned subsidiary of Angry Chickz, Inc. (the Member). The Member is the owner of all intellectual property rights in certain systems, trademarks, service marks, and other intellectual property used in the operation of Angry Chickz restaurants (the AC IP), and has licensed the AC IP and other know-how and confidential information to the Company to development the Angry Chickz franchise system to offer, sell, and support of the franchised business.
The Company will continue to franchise Angry Chickz restaurants throughout the United States and internationally through a 50-year royalty free renewable trademark license agreement with the Member. The license agreement grants the Company a non-exclusive right to use the AC IP, and to license the AC IP to franchisees under franchise agreements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the trademark license agreement between Angry Chickz Franchising, LLC and its Member is for a term of 50 years. This agreement is royalty-free and renewable. The license grants Angry Chickz Franchising, LLC a non-exclusive right to use the intellectual property, including trademarks and service marks, associated with the Angry Chickz restaurant concept. This also allows Angry Chickz Franchising, LLC to license the intellectual property to its franchisees.
For a prospective franchisee, this long-term license agreement suggests stability in the brand's intellectual property rights. The fact that it is royalty-free for Angry Chickz Franchising, LLC could indicate a strong financial arrangement between the company and its Member, potentially benefiting franchisees through lower overall costs. The non-exclusive nature of the license means that the Member could potentially license the intellectual property to other entities, although the primary focus is on supporting the Angry Chickz franchise system.
It's important to note that the financial statements included in the FDD are unaudited, and prospective franchisees should be aware that no certified public accountant has audited these figures or expressed an opinion on their content or form. This highlights the need for careful review and potentially seeking professional financial advice before making a decision to invest in an Angry Chickz franchise. The company's reliance on its Member for financial support during the start-up phase also suggests that the financial health of the Member is crucial to the stability of the franchise system.
Overall, the 50-year renewable trademark license agreement provides a foundation for the Angry Chickz franchise system, ensuring the availability of the brand's intellectual property for the long term. However, prospective franchisees should conduct thorough due diligence, including a review of the company's financial statements and the terms of the franchise agreement, to fully understand the implications of this arrangement.